Under what circumstances might Fitstop designate a method other than an Approved Supplier for gross revenue collection?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.1.1 Approved Supplier for Gross Revenue Collection, Billing and Remission of Funds to Franchisee. Unless we designate a different method in our Manuals or otherwise in writing, the Parties agree that we will designate an Approved Supplier to provide the following services on behalf of you and other System franchisees: (i) collection of membership fees and/or other Gross Revenue generated by the Franchised Business, as well as related merchant processing services; (ii) billing/invoicing services for the amounts due to us and/or any of our affiliates under this Agreement; and (iii) remission of the Gross Revenue, less any amounts due to us and/or our affiliates under this Agreement at the time of each such remission, to you.
Our then-current Approved Supplier(s) for such services, like other Approved Suppliers, will be identified in writing by us via the Manuals or otherwise.
- 13.1.2 EFT Program Participation; Designated EFT Account. Regardless of your obligations under Section 13.1.1, you must at all times participate in our automatic debit/credit transfer program as specified by us in our Manuals or otherwise in writing (the "EFT Program") for the payment of any amounts due to us pursuant to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop typically designates an Approved Supplier to handle gross revenue collection, billing, and fund remission to the franchisee. This includes collecting membership fees and other gross revenues, providing related merchant processing services, managing billing/invoicing for amounts due to Fitstop or its affiliates, and remitting the gross revenue to the franchisee after deducting any due amounts.
However, Fitstop retains the right to designate a different method for gross revenue collection. This alternative method would be communicated in Fitstop's Manuals or otherwise in writing to the franchisee.
Regardless of whether Fitstop uses an Approved Supplier or an alternative method for gross revenue collection, the franchisee must participate in Fitstop's automatic debit/credit transfer program (EFT Program) for paying amounts owed to Fitstop under the Franchise Agreement. This ensures that Fitstop receives timely payments of royalties and other fees.